Problem isn't the players, it's the house

Like many gamblers, South Africa has been slow to admit it has a problem. And like many gambling companies, we're quick to blame the problem on individuals who “play” irresponsibly.

- David Jeffery and Imraan Jeeva

This misses the real issue. The problem isn’t the users, many of whom are vulnerable. It’s the rich, sophisticated and politically-connected corporations that prey on them.

Gambling has become South Africa’s most virulent addiction. Online venues and bookmakers dominate: in the five years between 2018 and 2023, income for companies from these services increased by 1 400%. As Stats SA recently reported, more than half of many households “recreation expenditure” is spent on bets.

Yet the statistics overlook how predatory the sector is. Although cast as harmless entertainment, in a recent survey only 14% of gamblers did so for fun. Most — 63% — gamble with money they can’t afford to lose. Gambling is harmful; mountains of evidence link it to financial precarity, physical and mental harm, suicide and crime. And it is not just gamblers who are hurt.

For every person who struggles with gambling, a recent study estimated that at least six other people — friends, family — suffer. The industry’s profits rely on pressing the most vulnerable: in a US study, 4.9% of online gamblers accounted for 80% of the revenue. In a UK study, half of what companies “won” off their users (the Gross Gambling Yield) came from only 0.5% of gamblers.